Institution: A 5% yield on 10-year US Treasuries is a very attractive level

"If you ask me today where bond yields will be at the end of this year, the end of next year, and in the foreseeable future, I would say 5%," said Ed Yardeni, president of Yardeni Research. "I think interest rates have returned to normal levels, and this situation will last longer 5% is a very normal interest rate level, and it is also consistent with a well-functioning economy," Yardeni said in an interview. "I think 5% is very attractive." "To buy 10-year Treasuries at a 5% level, you have to be relatively optimistic that productivity will drive inflation down, and I think that is indeed what will happen." "Inflation expectations over the next decade are around 2%-2.5%. At the same time, if you can achieve a 2.5% real return, that is actually quite good in the bond market."